Buying

Buying a property, especially if it is to be your home, can be one of the most exciting purchases of your life!  For many people buying their first home will be the biggest financial decision in their lifetime.  It’s important therefore to research your purchase thoroughly, to be sure you are paying the right price.

Consider the services of a licensed valuer to do a valuation on the property, prior to making your offer.  Often buyers can get emotionally involved and over excited and pay too much.  Later, when you need to sell the property, this can be a major problem.

Consult your solicitor before signing a contract!  Your solicitor may advise you on the process of buying and suggest that you insert special conditions in the contract.  If you are buying an established property, you may want to obtain copies of the Building Approvals and Final Certificate to ensure you are not buying an unapproved house.

If you are buying land, consider obtaining a soil report.  Some areas may contain unstable ground that is more costly to build on.  Additional footings or slab modifications can be costly.  Make sure the land you are looking to buy is above any known flood level.  In Queensland, there have been many major flood events in recent years that have devastated properties.  As a result, insurance in flood affected areas has become unaffordable.

When buying a unit or apartment be sure to do your homework when it comes to the Body Corporate.  High Rise apartments can be very costly to own, especially if they are old.  Some buildings may require multi-million dollar renovations, as elevators wear out and if they’re near the beach, salt can corrode balconies, foundations and other steel objects.  Body Corporate levies vary from building to building and can cost tens of thousands of dollars each year.

Know what your rates will be and your water charges.  These also can add to the cost of home ownership by many thousands of dollars each year.

Shop around for the best deal on finance before buying any property.  Most buyers will enter in to a twenty-five or thirty year loan.  Paying even a slightly higher interest rate could cost you tens if not hundreds of thousands of dollars over the life of the loan.  Also make sure there are no penalty fees for paying the loan out early.

Carefully consider the benefits of any particular property.  If it is cheap, it may be because no one else wants it.  Try to buy a property that has an up-side, or that you can improve, or one that is in a popular location, where values are likely to go up.

And when you buy, look after your investment by maintaining it properly.  Because when it is time to sell, a run-down house or a poorly maintained property, will not only be harder to sell, but it will not sell for a premium price.

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